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HB743
HOUSE OF REPRESENTATIVES
H.B. NO.
743
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to fiscal sustainability
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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The legislature finds that
maintaining fiscal sustainability during development is critical.
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New development proposals need to be
evaluated not only against adopted development regulations and construction
standards, but should be judged, in part, based on the long-term revenues and
costs incurred by public entities.
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The
legislature further finds that land use planning would benefit from
incorporating a methodology that evaluates existing and proposed development by
their expected fiscal contributions and ongoing costs for services and
infrastructure.
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Such a methodology would
give decision-makers and the public the information needed to assess both
individual project proposals and regional investments.
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The development of such a methodology
requires the assistance of a steering committee and an entity with the
necessary fiscal modeling expertise.
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Accordingly,
the purpose of this Act is to:
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(1)
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Require the office of planning and sustainable
development to:
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(A)
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Develop
a model to assess the fiscal impacts of land use development projects and
regional infrastructure investments; and
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(B)
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Establish
a fiscal sustainability steering committee to advise in the development of the
model; and
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(2)
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Appropriate funds for the development of the
fiscal impact model, related staffing, and to support the steering committee.
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SECTION
2.
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(a)
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The office of planning and sustainable development shall develop a model
to assess the fiscal impacts of land use development
projects and regional infrastructure investments
.
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The office may procure consultant services,
subject to the requirements of chapter 103D, Hawaii Revised Statutes, for the
development and implementation of the fiscal impact model.
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(b)
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The development of the fiscal impact model
shall include but not be limited to the following:
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(1)
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A model, customized for each county, that
allows for the assessment of fiscal costs and benefits of individual land
development projects and regional investments within the same market.
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The model shall be capable of capturing
estimated ongoing maintenance costs and future replacement costs of
infrastructure serving land development projects and any annual general costs,
including public safety and administrative services.
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The model shall allow users to input data so that:
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(A)
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State and county fiscal revenues and costs can
be mapped by land use type;
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(B)
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Fiscal productivity of various development patterns
in the State can be compared at the parcel level, by land use type;
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(C)
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The value of any new development can be
measured and evaluated, and measured against proposed entitlements;
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(D)
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Public policy decisions can be analyzed to
reduce or eliminate taxpayer subsidies; and
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(E)
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Funding of capital improvements can be
prioritized based on their anticipated return on investment;
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(2)
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Training for state and county employees in the
use, methodology, and updating of the model, including developing user-tested
training material, so that upon completion of the model's development, county
employees can successfully use and update the model; and
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(3)
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Ensuring that the model outputs can be easily
read and interpreted, with geo-referenced visual mapping, by members of the
public.
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(c)
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The office of planning and sustainable
development shall establish and provide support for a steering committee to
advise on the development of the fiscal impact model.
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The steering committee shall be comprised of
the following members:
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(1)
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The director of the office of planning and
sustainable development, or the director's designee, who shall serve as the
co-chairperson of the committee;
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(2)
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The director of finance, or the director's
designee, who shall serve as the co-chairperson of the committee;
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(3)
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The director of taxation, or the department of
taxation's research and planning officer;
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(4)
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The administrator of the research and economic
analysis division of the department of business, economic development, and
tourism, or the administrator's designee;
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(5)
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The budget and finance directors of each
county, or the county directors' respective designees; and
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(6)
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The planning directors of each county, or the
county directors' respective designees.
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(d)
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The office of planning and sustainable
development shall submit a report on the development of the fiscal impact model
to the legislature no later than twenty days prior to the convening of the
regular session of 2027.
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SECTION 3.
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There is appropriated out of the general
revenues of the State of Hawaii the sum of $300,000 or so much thereof as may
be necessary for fiscal year 2025-2026 and the same sum or so much thereof as
may be necessary for fiscal year 2026-2027 for the development of the fiscal
impact model pursuant to section 2 of this Act.
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The sums
appropriated shall be expended by the office
of planning and sustainable development for the purposes of this Act.
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SECTION 4.
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There is appropriated out of the general
revenues of the State of Hawaii the sum of $150,000 or so much thereof as may
be necessary for fiscal year 2025-2026 and the same sum or so much thereof as
may be necessary for fiscal year 2026-2027 to hire a temporary full-time
equivalent (1.0 FTE) planner (planner V equivalent), who shall be exempt from
chapter 76, Hawaii Revised Statutes, to manage the fiscal impact model
development project and support the work of the steering committee as required
pursuant to section 2 of this Act.
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The sums
appropriated shall be expended by the office
of planning and sustainable development for the purposes of this Act.
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SECTION 5.
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This Act shall take effect on July 1, 2025.
INTRODUCED BY:
_____________________________
Report Title:
Land Use;
Fiscal Impact Model; Fiscal Sustainability; Appropriation
Description:
Requires
the Office of Planning and Sustainable Development to develop a model that
assesses the fiscal impacts of land use development projects and regional
infrastructure investments.
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Appropriates
funds.
The summary description
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not legislation or evidence of legislative intent.